2025 UPDATE – Note that there is new language required for these reports found in the latest Condominium Rider to the FAR BAR Contract…

ORIGIONAL POST…

The condominium rider to the FAR BAR contract states at the end of it that:

MILESTONE INSPECTION REPORT SUMMARY: Pursuant to Section 718.503(2)(a)5, F.S., Buyer who has entered into this Contract is entitled, at Seller’s expense, to receive from Seller, before the sale of the Property, a copy of the inspector-prepared summary of the milestone inspection report, as described in Sections 553.899 and 718.301(4)(p), Florida Statutes, if (1) applicable and (2) the summary has been submitted to the Association.

What is this? Following the collapse of the Surfside building the Florida legislature made some changes and this is one of them.

“Milestone inspection” means a structural inspection of a building, including an inspection of load-bearing elements and the primary structural members and primary structural systems as those terms are defined in s. 627.706, by an architect licensed under chapter 481 or engineer licensed under chapter 471 authorized to practice in this state for the purposes of attesting to the life safety and adequacy of the structural components of the building and, to the extent reasonably possible, determining the general structural condition of the building as it affects the safety of such building, including a determination of any necessary maintenance, repair, or replacement of any structural component of the building. The purpose of such inspection is not to determine if the condition of an existing building is in compliance with the Florida Building Code or the firesafety code. The milestone inspection services may be provided by a team of professionals with an architect or engineer acting as a registered design professional in responsible charge with all work and reports signed and sealed by the appropriate qualified team member.

It is worth noting here that the the Milestone Study is sent to the association’s local building department, where it can be examined by anyone who requests it. All one need do is to make a public records request for it.

05/22/2025 – The time for the completion of the Structural Reserve Study has been extended… https://www.floridarealtors.org/news-media/news-articles/2025/05/desantis-sign-condo-changes

The Condominium rider to the FAR BAR Contract states at the end of it that:

STRUCTURAL INTEGRITY RESERVE STUDY: Pursuant to Section 718.503(2)(a)6, F.S., Buyer who has entered into this Contract is entitled, at Seller’s expense, to receive from Seller, before the sale of the Property, a copy of the Association’s most recent structural integrity reserve study or a statement that the Association has not completed a structural integrity reserve study.

What is this? Well following the collapse of the Surfside tower the Florida legislature made some changes. Effective December 31, 2024, a residential condominium must have a structural integrity reserve study completed at least every 10 years after the condominium’s creation for each building on the condominium property that is three stories or higher in height as determined by the Florida Building Code?

What is it?

A structural integrity reserve study is a study of the reserve funds required for future major repairs and replacement of the condominium property performed as required under s. 718.112(2)(g).

For a budget adopted on or after December 31, 2024, the members of a unit owner controlled association that must obtain a SIRS may not determine to provide no reserves or less reserves than required for items listed in paragraph (g).

For a budget adopted on or after December 31, 2024, the members of a unitowner controlled association that must obtain a SIRS may not vote to use reserves, or any interest accruing thereon, for any other purpose other than the replacement or deferred maintenance costs of the components listed in paragraph (g).

The SIRS must identify each item being visually inspected, state the
estimated useful life and the estimated replacement cost or deferred
maintenance expense of each item, and provide a reserve funding schedule with a recommended annual reserve amount that achieves the estimated cost or deferred maintenance expense of each item inspected by the end of the estimated remaining useful life of the item.

Source: Prequalified vs. Preapproved: Key Differences

I can not count the number of times I have had to have this conversations.

If you’re buying, get a preapproval.

If you’re a seller INSIST on a preapproval.

They finally got around to “undating” the FEMA flood maps this year. So what happened?

First, WAY back around Christmas 2019 (yes, that’s right) FEMA proposed updating the Flood Insurance Rate Maps (FIRM’s) for Palm Beach County. Now, this was silly. First, theses maps were just updated in Oct of 2017. Even those were silly though as they based even these on data collected in 2004. And they used the same data for the new maps.

Anyway, when they were first proposed I loked at them and told the county engineer they were VERY wrong. I showed him examples in places like Frenchmans Harbour in Juno Beach which was constucted AFTER 2004. It was also silly has we have much better and much more current LiDAR data. So then cam COVID and it all stopped. Then Palm Beach County hired a firm to formalize my argument and they appealed the new maps. They lost the first round and then appealed that. But then we FEMA went to Risk Rating 2.0. This did not negate the use of the FIRM’s BUT it did limit how they are used. Basically, under Risk Rating 2.0, each property is individually rated for flood risk. Supposedly it matters not, for premium pricing, if you are a flood zone. The new FIRM’s in this area will be effective in Dec 2024. I just looked at the map for a house in North Palm Beach. The new map, eff Dec 2024, shows things like the LiMWA line on it but it also moved the area showing properties in the Special Flood Hazard Area and increased the Base Flood Elevation by 1′. Doesn’t sound like much but there are places like Paradise Port that the BFE has been raised by SEVERAL FEET.

So, what are FIRM’s now used for?

FIRM’s are still used by you lender to determine IF flood insurance is required under your mortgage. FIRM’s are used by local planning agencies like building departments for flood plain management. And, the BIG thing they are used for is to determine what rules apply to your property for things like the 50% rule. The basics of this are that IF you do renovations on your property that exceed 50% of the buildings (not land) assesed value in any given year then you MAY need to bring the property into full compliance. And full compliance may require the owner to say elevate the first floor, or provide for break away walls at the first floor. And lots of other stuff as well. If you’re buying a property in a flood zone you should speak to an engineer before doing so. Especially if you plan on remodeling and just to know in case you ever get hit by a hurricane.